The Most Shocking Rental Revelations Ever: “It’s More Affordable than a 40-Year-Old Apartment.”

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This coming November, 12,000 households will begin moving into the Dunchon Jugong Apartments redevelopment complex in Seoul.

Prospective tenants, who find it difficult to live there due to financial constraints, immediately market the properties for rent.

As a result, a phenomenon occurs when the rent of a new apartment is lower than the 40-year-old apartment next door.

It looks like it will also affect rental prices in the surrounding areas.

Reporter Park Chol-hyun covered the story.

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A large new apartment complex which has redeveloped the old Duncon Jugong Apartments.

12,000 households are expected in November, the largest ever.

The complex directly opposite is an apartment complex that was built about 40 years ago.

However, the rental price of the 83 square meter exclusive apartment built last week was 750 million won.

On the other hand, this newly built apartment of the same size sold for less than 700 million won.

The rental price of a newly built apartment is lower than a 40-year-old apartment.

This phenomenon occurred when the obligation to actually occupy apartments with price thresholds was postponed for three years.

This is because a large number of would-be renters who don't have the funds are offering jeonse instead of real residences, leading to an increase in jeonse properties for sale.

(Real estate agent (Gangdong-gu, Seoul))
“It doesn't matter because the landlords don't have the money, so they can just put the down payment in and get a loan against the down payment, but because they're just tightening the balance, they're now leaving the senior. credit and get out cheap.”

In the Gangdong-gu area of ​​Seoul, where the number of renters is concentrated, the number of rental properties increased by about 20% in just one month.

Because of this, Gangdong-gu was the only district in Seoul where apartment rental prices fell last week.

There are also predictions that if no tenants are found, the decline could increase as the move-in deadline approaches.

(Real estate agent in Songpa-gu, Seoul)
“I think 30 pyeong (at the time of the move) will cost 500 to 600 million won. That's because it was a bit difficult in the beginning, but now the money suddenly drops in half.”

It is inevitable that the rental prices of the surrounding areas will also be affected.

(Won-Gap Park/Senior Real Estate Expert, KB Kookmin Bank)
“If more than 10,000 apartments are moved at once, it is expected to affect not only the Gangnam area, but also the adjacent Hanam and Namyangju, Seongnam areas.”

However, looking at similar cases in the past, it seems unlikely that this stabilizing effect on jeonse prices will last long.

There is also analysis that, without the influence of other factors, it is unlikely that the sales price will decrease due to the increase in rental properties.

This is Park Chol-hyun from MBC News.

Video coverage: Jahoon Han / Video editing: Jinwoo Kim

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